SC declines SpiceJet request to extend time to make payment to Kalanithi Maran, Kal Airways

The Supreme Court said these are "luxury litigations" and "the writ of the court has to be complied with", while refusing to extend time for SpiceJet make payment to Kalanithi Maran, Kal Airways.

New Delhi: In a setback to SpiceJet airlines, the Supreme Court on Friday declined to give the low-cost carrier any more time to make the payment to Kalanithi Maran and his Kal Airways in pursuance of an arbitral award in connection with a share-transfer dispute. The top court stressed that these are "luxury litigations" and "the writ of the court has to be complied with".

Senior advocate Mukul Rohatgi, representing SpiceJet, contended before a bench headed by Chief Justice of India D Y Chandrachud and comprising Justice P S Narasimha that the court should extend the time. The bench said the entire award has now become executable, while declining to extend the time.

In May, the Delhi High Court had directed SpiceJet to deposit "forthwith" Rs 75 crore, which had to be paid to Maran and his Kal Airways towards interest on the arbitral award.

The HC’s order came after the Supreme Court's February 13 order, directing SpiceJet to pay Rs 75 crore within three months to Kal Airways, controlled by Maran, the former promoter of SpiceJet. However, the airline failed to do so.

On February 13, the apex court had said: "The bank guarantee (Rs 270 crore) shall be encashed immediately and the proceeds shall be payable to the respondent-decree holder within two weeks. This will ensure that quantum of the principal sum due in the award is paid over in its entirety; (ii) The appellant shall, within a period of three months, pay an amount of Rs 75 crores to the respondent towards the liability on account of interest pending the disposal of the petition under Section 34”.

Today, during the hearing the apex court said, “the battery of lawyers is involved in all this and you know, the idea is just to delay complying with the orders of the court….”. The Chief Justice said, “the writ of the court has to be complied with…..”.

Senior advocate Maninder Singh, representing Maran and his Kal Airways, submitted that nothing has been paid after the top court order. Singh, appearing through Karanjawala and Company, pressed that no indulgence should be given to SpiceJet in the form of extension of time and said, “Rs 75 crore is not a small amount….”. The top court said, “These are all luxurious litigations. No further extension of time can be granted…..”.